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Minutes June 12, 2001CITY OF DENTON CITY COUNCIL MINUTES June 12, 2001 The City Council of the City of Denton, Texas observed a demonstration of decibel levels on Tuesday, June 12, 2001 at 5:00 p.m. in the parking lot behind Muther's at 113 Avenue A, Denton, Texas. PRESENT: Mayor Brock; Mayor pro Tem Beasley; Council Members Burroughs, Fulton, McNeill, Phillips, and Redmon. ABSENT: None Following completion of the demonstration and after determining that a quorum was present, the City Council convened in a Work Session on Tuesday, June 12, 2001 at 6:00 p.m. in the Council Work Session Room. 1. The Council received a report, held a discussion, and gave staff direction regarding proposed revisions to Section 20-1 of the Code of Ordinances regulating noise. Scott Fletcher, Field Operation-East-Denton Police Department, stated that on April 24, 2001 staff presented a background packet on proposed revisions to the current noise ordinance. After Council discussion, staff was requested to do further research in several areas including outdoor music festivals, outdoor performances, decibel levels and industrial performance standards. Regarding the outdoor music festival, staff had suggested a 70 dba at the established perimeter of the event be established while Council had asked staff to consider a 75 dba level. The concern with outdoor performances dealt with the amount of noise produced by bands or other music sources in an outdoor setting. It was determined that the amount of noise would have to be much less to stay within the requirements of the ordinance. Staff suggested using the provisions set out for amplified sound in the ordinance revisions to cover all venues and properties employing amplified sound or any other source delineated in the specific section of the ordinance. The industrial performance standards were incorporated into the Development Plan. Staff was recommending that Council adopt the ordinance as written. Mayor Pro Tem Beasley felt that the ordinance should remain at 70 dba and not be increased to 75 dba. This was a good starting point and further evaluations could take place on how effective was the ordinance. Council discussed the pros and cons of using the decibel for the standard of noise regulation. Consensus of the Council was to move forward with the ordinance, keep the 70 dba instead of increasing it to 75 dba and to look into more sensitive meters to make sure all bands of noise were covered. A review of the ordinance would be scheduled to determine its effectiveness. Tom Kay spoke regarding the issue. 2. The Council received a report, held a discussion and gave staff direction concerning the development of a drainage fee. Jim Coulter, Director of Water/Wastewater, stated that in FY 1999, the drainage program was transferred to the Wastewater Department. He indicated that water and wastewater rates were not designed to carry the funding for the drainage program and recent drought conditions had enabled Water and Wastewater to provide drainage funding. In addition to the transfer of the 18 City of Denton City Council Minutes June 12, 2001 Page 2 drainage program, the responsibility for bridges and creek crossings was also transferred. Current funding levels for drainage were not adequate to cover the costs of bridge and crossing maintenance. One method cities were using to help with the advancing costs for drainage, bridge and crossing maintenance was the development of drainage fees. Other cities that had developed drainage fees indicated that some form of impervious coverage basis was used for the calculation of the fees. This appeared to be the most equitable means of assessing a drainage fee. The Drainage Division was recommending a schedule of public meetings to discuss drainage issues including future funding issues. Staff was recommending the continued development of a drainage fee based on impervious surface area calculations. This approach was most equitable because it placed a proportionate cost of the drainage impacts on the customers that placed the greatest load on the system. Consensus of the Council was to look at a governmental rate for school and other government entities in the city, to look at a means to calculate the rate for smaller sized homes and to continue the development of a drainage fee based on impervious surface area calculations. 3. The Council received a report and held a discussion on conversion of the overhead electric lines to underground along University Boulevard. Chuck Sears, Engineering Administrator, presented an overview of the project and some of the challenges associated with the project. Phase I, Loop 288 to Locust Street, was scheduled to be completed in November 2001. Phase II, Locust Street to 1-35, was scheduled to be completed in 2003. Money was included in the 2002 budget for continuing the construction from Locust to 1- 35. There were no plans available for Phase II at this point in time. The final design would be coordinated with the TxDOT plans and costs could change. When Phase I was completed, there would be no power lines visible adjacent to either side of University. There would be four street crossings remaining - a transmission line and distribution at Old North, a crossing at Ruddell, a crossing at Bell and a crossing just west of Loop 288. He reviewed the costs associated with the project. Other challenges associated with the project included obstructions such as buildings, walls, gas lines and meters, curves in the road and bridges and open drainage plus higher costs associated with necessary remote improvements. 4. New Business The following items of New Business were suggested by Council Members for future agendas: A. Council Member Fulton requested an update on the LINK routes, particularly in northeast Denton. B. Council Member Redmon asked for a discussion regarding a standing item on the agenda for board and commission appointments. C. Council Member Phillips asked for a discussion on automated garbage pick-up, including the status on the results of the test program if there was one. Immediately following completion of the Work Session, and after determining that a quorum of the Council was present, the Denton City Council convened a Special Called Closed Meeting on June 12, 2001, and continuing thereafter until completed, in the City of Denton Work Session Room. City of Deuton City Council Minutes June 12, 2001 Page 3 189 1. The Council considered the following in Closed Meeting: Deliberations Regarding Certain Public Power Utilities Competitive Matters --- Under TEX. GOV'T. CODE Section 551.086.**Consultation with Attorney Under TEX. GOV'T. CODE Section 551.071. (1) Received competitive electric market information and directed questions to potential purchasers, discussed and deliberated the same. Received a confidential competitive electric utility presentation and received competitive electric market information from Staff and City's consultants; discussed, deliberated, considered, provided Staff with direction, vote, and took final action as necessary, regarding future wholesale power purchase transactions and strategies including, but not limited to the replacement of electric generation resources; and the proposed sale, transfer, assignment, or other divestiture of a part of the City of Denton's electric utility system, including, without limitation: the Spencer generation facility located on Spencer Road in the City of Denton, Denton County, Texas; and the two hydroelectric facilities owned by the City located in Denton County, Texas. Conducted a consultation with the City's attorneys and its outside legal counsel in order to obtain the advice and recommendations of the City's attorneys concerning the above-referenced issues, where to discuss such issues and matters in a public meeting would conflict with the attorney's duties and professional responsibilities to their client under the Texas Disciplinary Rules of Professional Conduct, or any other applicable Disciplinary Rules of Professional Conduct. Immediately following the Special Called Closed Meeting of the City Council, and after determining that a quorum of the Council was present, the City Council considered the following specific items set forth below, in a Special Called Open Meeting of the City Council at the City of Denton Work Session Room. 1. The Council considered adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the execution by the City Manager of an Asset Purchase Agreement by and among the City of Denton, Spencer Station Generating Company, L.P., a Delaware limited partnership, and PG&E Generating Company, LLC, a Delaware limited liability company; authorizing and approving the execution by the City Manager of a Transition Power Agreement by and between the City of Denton and PG&E Energy Trading - Power, L.P., a Delaware limited partnership; approving and authorizing the execution by the City Manager of a Transition Power Agreement Guarantee by and between the City of Denton and PG&E Trading Holdings, LLC, a Delaware limited liability company; authorizing and approving the execution by the City Manager of a Bill of Sale by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City Manager of an Assignment and Assumption Agreement by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City Manager of a Continuing Site/Interconnection Agreement by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City Manager of an Easement, License and Attachment Agreement by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution City of Denton City Council Minutes June 12, 2001 Page 4 by the City Manager of a Guarantee by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City Manager of a Water Rights Agreement by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City Manager of a Reclaimed Water Service and Wastewater Return Agreement by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City Manager of a Power Transfer Agreement by and between the City of Denton and PG&E Energy Trading - Power, L.P.; authorizing and approving the execution by the City Manager of a Special Warranty Deed by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution by the City Manager of Blanket Conveyances by and between the City of Denton and Spencer Station Generating Company, L.P.; authorizing and approving the execution of such other agreements and other documents, including, without limitation, certificates, contracts, assignments, licenses, leases, directions, instruments, and statements by the city manager, which are incident or related thereto, as shall be reasonably determined by the city attorney or his designee; confirming and ratifying that the City of Denton, its mayor, its city council, its city manager, and its city attorney shall be authorized and empowered to perform such acts and obligations as are reasonably required to consummate this transaction; ratifying all prior actions taken by the city council in furtherance of the foregoing transactions; making such findings as are required by the Public Utility Holding Company Act of 1935, as amended, and the Federal Energy Regulatory Commission implementing regulations; finding and determining that several of said agreements pertain to a competitive electric matter as set forth under the provisions of Section 551.086 and Section 552.131 of the Texas Government Code, as amended; finding and determining that Texas Government Code Section 252.022(a)(15) and Section 272.0010) apply; adopting significant findings, conclusions, and recitations as are set forth in the preamble of this ordinance; finding that the sale of these electric generation resources owned by the city in connection with its electric utility under the asset purchase agreement are not essential to continued effective utility service when considering the purchase of capacity and energy, and other arrangements made by the city under the terms of the transition power agreement and other agreements; authorizing the expenditure of funds therefor; and providing an effective date. Sharon Mays, Director of Electric Utilities, stated that staff was recommending that the City sell the Spencer Generating Plant, the Ray Roberts and Lewisville Hydroelectric Plants to the Spencer Generating Company and sign a power purchase contract for 5 years with PG&E Energy Trading Company. That contract would supply all of DME's wholesale capacity and energy requirements above the output from the Gibbons Creek Plant. The 5 year period would be used to watch the new deregulated market to determine an appropriate strategy for DME to provide future service to the citizens. Greg Kelly, PG&E National Energy Group, stated that this company was a different group from the Pacific Gas and Electric Company, the California utility. They had no ties with Pacific Gas and Electric on a business basis. Mark Carney, PG&E, spoke on environmental accomplishments of the company. The following ordinance was considered: City of Denton City Council Minutes June 12, 2001 Page 5 191 NO. 2001-216 AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN ASSET PURCHASE AGREEMENT BY AND AMONG THE CITY OF DENTON, SPENCER STATION GENERATING COMPANY, L.P., A DELAWARE LIMITED PARTNERSHIP, AND PG&E GENERATING COMPANY, LLC, A DELAWARE LIMITED LIABILITY COMPANY; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A TRANSITION POWER AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND PG&E ENERGY TRADING - POWER, L.P., A DELAWARE LIMITED PARTNERSHIP; APPROVING AND AUTHORIZING THE EXECUTION BY THE CITY MANAGER OF A TRANSITION POWER AGREEMENT GUARANTEE BY AND BETWEEN THE CITY OF DENTON AND PG&E TRADING HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A BILL OF SALE BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN ASSIGNMENT AND ASSUMPTION AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A CONTINUING SITE/INTERCONNECTION AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN EASEMENT, LICENSE AND ATTACHMENT AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A GUARANTEE BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A WATER RIGHTS AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A RECLAIMED WATER SERVICE AND WASTEWATER RETURN AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A POWER TRANSFER AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND PG&E ENERGY TRADING - POWER, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A SPECIAL WARRANTY DEED BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF BLANKET CONVEYANCES BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION OF SUCH OTHER AGREEMENTS AND OTHER DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CERTIFICATES, CONTRACTS, ASSIGNMENTS, LICENSES, LEASES, DIRECTIONS, INSTRUMENTS, AND STATEMENTS BY THE CITY MANAGER, WHICH ARE INCIDENT OR RELATED THERETO, AS SHALL BE REASONABLY DETERMINED BY THE CITY ATTORNEY OR HIS DESIGNEE; CONFIRMING AND RATIFYING THAT THE CITY OF DENTON, ITS MAYOR, ITS CITY COUNCIL, ITS CITY MANAGER, AND ITS CITY ATTORNEY SHALL City of Denton City Council Minutes June 12, 2001 Page 6 BE AUTHORIZED AND EMPOWERED TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARE REASONABLY REQUIRED TO CONSUMMATE THIS TRANSACTION; RATIFYING ALL PRIOR ACTIONS TAKEN BY THE CITY COUNCIL IN FURTHERANCE OF THE FOREGOING TRANSACTIONS; MAKING SUCH FINDINGS AS ARE REQUIRED BY THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935, AS AMENDED, AND THE FEDERAL ENERGY REGULATORY COMMISSION IMPLEMENTING REGULATIONS; FINDING AND DETERMINING THAT SEVERAL OF SAID AGREEMENTS PERTAIN TO A COMPETITIVE ELECTRIC MATTER AS SET FORTH UNDER THE PROVISIONS OF SECTION 551.086 AND SECTION 552.131 OF THE TEXAS GOVERNMENT CODE, AS AMENDED; FINDING AND DETERMINING THAT TEXAS GOVERNMENT CODE SECTION 252.022(A)(15) AND SECTION 272.001(J) APPLY; ADOPTING SIGNIFICANT FINDINGS, CONCLUSIONS, AND RECITATIONS AS ARE SET FORTH IN THE PREAMBLE OF THIS ORDINANCE; FINDING THAT THE SALE OF THESE ELECTRIC GENERATION RESOURCES OWNED BY THE CITY IN CONNECTION WITH ITS ELECTRIC UTILITY UNDER THE ASSET PURCHASE AGREEMENT ARE NOT ESSENTIAL TO CONTINUED EFFECTIVE UTILITY SERVICE WHEN CONSIDERING THE PURCHASE OF CAPACITY AND ENERGY, AND OTHER ARRANGEMENTS MADE BY THE CITY UNDER THE TERMS OF THE TRANSITION POWER AGREEMENT AND OTHER AGREEMENTS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. Burroughs motioned, Beasley seconded to adopt the ordinance. On roll vote, Beasley "aye", Burroughs "aye", Fulton "aye", McNeill "aye", Phillips "aye", Redmon "nay", and Mayor Brock "aye". Motion carded with a 6-1 vote. 2. The Council considered adoption of an ordinance approving a letter real estate agreement between the City of Denton and Union Pacific Railroad Company relating to the purchase of approximately 190,400 square feet of land located between E. McKinney and Prairie and adjacent to Union Pacific rail lines for use as parking and hike and bike trails and related purposes; authorizing the expenditure of funds therefor; and providing an effective date. The following ordinance was considered: NO. 2001-217 AN ORDINANCE APPROVING A LETTER REAL ESTATE AGREEMENT BETWEEN THE CITY OF DENTON AND UNION PACIFIC RAILROAD COMPANY RELATING TO THE PURCHASE OF APPROXIMATELY 190,400 SQUARE FEET OF LAND LOCATED BETWEEN E. MCKINNEY AND PRAIRIE AND ADJACENT TO UNION PACIFIC RAIL LINES FOR USE AS PARKING AND HIKE AND BIKE TRAILS AND RELATED PURPOSES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. Fulton motioned, Beasley seconded to adopt the ordinance. On roll vote, Beasley "aye", Burroughs "aye", Fulton "aye", McNeill "aye", Phillips "aye", Redmon "aye", and Mayor Brock "aye". Motion carded unanimously. City of Denton City Council Minutes June 12, 2001 Page 7 193 3. The Council considered adoption of an ordinance approving a correction deed between the City of Denton and Union Pacific Railroad Company relating to a line sale agreement dated July 2, 1993 for Union Pacific's Denton Branch Rail Line between Milepost 721.72 at Denton, Texas, and Milepost 729.5 at Coors, Texas; and providing an effective date. The following ordinance was considered: NO. 2001-218 AN ORDINANCE APPROVING A CORRECTION DEED BETWEEN THE CITY OF DENTON AND UNION PACIFIC RAILROAD COMPANY RELATING TO A LINE SALE AGREEMENT DATED JULY 2, 1993 FOR UNION PACIFIC'S DENTON BRANCH RAIL LINE BETWEEN MILEPOST 721.72 AT DENTON, TEXAS, AND MILEPOST 729.5 AT COORS, TEXAS; AND PROVIDING AN EFFECTIVE DATE Beasley motioned, Burroughs seconded to adopt the ordinance. On roll vote, Beasley "aye", Burroughs "aye", Fulton "aye", McNeill "aye", Phillips "aye", Redmon "nay", and Mayor Brock "aye". Motion carried with a 6-1 vote. 4. There was no official action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. With no further business, the meeting was adjourned at 11:10 p.m. CITY OF DENTON, TEXAS EULINE BROCK, MAYOR CITY OF DENTON, TEXAS